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This study aims to investigate the effect of different types of performance measurement systems (PMSs) use (diagnostic use and interactive use) on Industry 4.0 maturity, examining whether there is a need for digital governance to facilitate the relationship between different types of PMS use (diagnostic use and interactive use) and Industry 4.0 maturity. Although the use of PMSs has been identified as beneficial in the Industry 4.0 context, relatively little research exists on the digital governance that enables firms to lead and control digital processes. The paper posits that digital governance plays an important role in mediating the relationship between PMS use and Industry 4.0 maturity. The data were gathered from 280 small- and medium-sized enterprises (SMEs), which operate in the service and manufacturing industry in Finland. The results demonstrate that different types of PMSs use cannot provide Industry 4.0 maturity alone, so there is a need for digital governance to fuel different types of PMS use, hence leading to Industry 4.0 maturity. However, diagnostic use of PMSs significantly hinders digital governance, while the interactive use of PMSs significantly drives digital governance. Finally, digital governance facilitates Industry 4.0 maturity. [ABSTRACT FROM AUTHOR]

We study how managers interactively use management control systems (MCS) in response to shareholder activism in a context of performance declines. We predict that broad-scope MCS design is a key factor that helps explain variation in the level of interactive use. In addition, we argue that the extent to which diagnostic use of MCS alleviates shareholder pressures depends on analysts' recommendations. We empirically test our hypotheses with survey and archival data. Data on shareholder activism is hand-collected. The results provide support for our predictions, suggesting that managers use MCS interactively to assuage shareholder activism in the context of performance declines. This effect is less pronounced for managers equipped with broad-scope information from their MCS. Our findings indicate that in a setting of favorable analysts' recommendations, managers use MCS diagnostically instead of interactively to cope with shareholder activism. Overall, the findings may help inform our understanding of how firms manage shareholder activism from a management control perspective. [ABSTRACT FROM AUTHOR]

Purpose: This study analyzes the influence of diagnostic and interactive use of the performance measurement system (PMS) on job satisfaction and affective organizational commitment. Originality/value: The study provides empirical evidence that contributes to highlighting the contrasting findings in the literature on how the use of PMS influences job satisfaction and the affective organizational commitment of individuals. Design/methodology/approach: A survey was carried out with middlelevel managers of companies featured in the Best Companies to Work For ranking by the Você S/A magazine, where a sample of 167 valid responses was obtained. We applied the structural equation modeling to test the hypotheses. Findings: The results show a direct relationship between the interactive use of PMS and job satisfaction. They also indicate a direct connection between job satisfaction and affective organizational commitment. Furthermore, they show that diagnostic use directly impacts affective organizational commitment, while interactive use indirectly impacts affective organizational commitment by mediating job satisfaction. These results contribute to the literature by revealing that PMS's diagnostic and interactive uses result in different psychological consequences, such as job satisfaction and affective organizational commitment. They also contribute by reinforcing the previous literature regarding the complementarity and interdependence of the dual role of the PMS in the organizational context since the interactive use provides a flexible basis for the performance of activities, and the diagnostic use requires alignment of individual behaviors with organizational standards. [ABSTRACT FROM AUTHOR]

RESUMO Objetivo: Este estudo analisa a influência dos usos diagnóstico e interativo do sistema de mensuração do desempenho (PMS) na satisfação no trabalho e no comprometimento organizacional afetivo. Originalidade/valor: O estudo traz evidências empíricas que contribuem para o deslinde dos achados contrastantes da literatura sobre como o uso do PMS influencia na satisfação no trabalho e no comprometimento organizacional afetivo de indivíduos. Design/metodologia/abordagem: Uma survey foi realizada com gestores de nível intermediário de empresas classificadas no ranking Melhores Empresas para Trabalhar da revista Você S/A, em que se obteve uma amostra de 167 respostas válidas. Para testar as hipóteses, aplicou-se a modelagem de equações estruturais. Resultados: Os resultados mostram relação direta entre o uso interativo do PMS e a satisfação no trabalho. Também apontam relação direta entre a satisfação no trabalho e o comprometimento organizacional afetivo. Ainda, evidenciam que o uso diagnóstico afeta diretamente o comprometimento organizacional afetivo, enquanto o uso interativo afeta indiretamente o comprometimento organizacional afetivo, pela mediação da satisfação no trabalho. Esses resultados revelam que os usos diagnóstico e interativo do PMS implicam diferentes consequências psicológicas, como satisfação no trabalho e comprometimento organizacional afetivo. Também reforçam a literatura prévia quanto à complementaridade e interdependência do duplo papel do PMS no contexto organizacional, visto que o uso interativo fornece uma base flexível para o desempenho das atividades e o uso diagnóstico impõe alinhamento dos comportamentos individuais aos padrões organizacionais. / Abstract Purpose: This study analyzes the influence of diagnostic and interactive use of the performance measurement system (PMS) on job satisfaction and affective organizational commitment. Originality/value: The study provides empirical evidence that contributes to highlighting the contrasting findings in the literature on how the use of PMS influences job satisfaction and the affective organizational commitment of individuals. Design/methodology/approach: A survey was carried out with middlelevel managers of companies featured in the Best Companies to Work For ranking by the Você S/A magazine, where a sample of 167 valid responses was obtained. We applied the structural equation modeling to test the hypotheses. Findings: The results show a direct relationship between the interactive use of PMS and job satisfaction. They also indicate a direct connection between job satisfaction and affective organizational commitment. Furthermore, they show that diagnostic use directly impacts affective organizational commitment, while interactive use indirectly impacts affective organizational commitment by mediating job satisfaction. These results contribute to the literature by revealing that PMS’s diagnostic and interactive uses result in different psychological consequences, such as job satisfaction and affective organizational commitment. They also contribute by reinforcing the previous literature regarding the complementarity and interdependence of the dual role of the PMS in the organizational context since the interactive use provides a flexible basis for the performance of activities, and the diagnostic use requires alignment of individual behaviors with organizational standards.

The purpose of this paper is to investigate how to make risk management systems (RMS) more effective. We identify a critical element for effective RMS, which is neglected in the literature, and argue that the potential of advanced RMS designs (e.g., enterprise risk management—ERM) depends on the interactive style of use. However, interactive use is costly in terms of managers' time and attention, so many organizations do not use RMS in this way. Using survey data and PLS-SEM, we show for our sample companies that the positive effects of advanced RMS design on effectiveness are fully mediated through interactive use of RMS. This brings on an important implication that a RMS leads to better results when it is used interactively. For example, more interactive use of less developed RMS design (such as the traditional silo-based design) would improve its effectiveness by compensating for the lack of an organization-wide RMS. [ABSTRACT FROM AUTHOR]

This study examines the associations between top management's interactive and diagnostic use of financial and non-financial performance measures with individual manager's (i.e. middle and lower level managers) creativity, and the mediating role of middle and lower level manager's perceived fairness of their performance appraisal on such associations. Using data from a survey of 220 middle and lower level managers from manufacturing organisations in Australia, the structural equation model revealed direct positive associations between both the diagnostic use of financial performance measures and the interactive use of non-financial performance measures with individual creativity. Further, the positive effect of the interactive use of financial performance measures on individual creativity is positively and fully mediated by distributive, interpersonal and informational fairness, while the positive effect of the interactive use of non-financial measures is positively and partially mediated by interpersonal and informational fairness. In addition, procedural fairness positively and partially mediates the effect of the diagnostic use of financial performance measures on individual creativity, and interpersonal fairness positively and fully mediates the effect of the diagnostic use of non-financial performance measures on individual creativity. The findings contribute to the performance measurement and appraisal literature examining the interactive and diagnostic use of both financial and non-financial performance measures and extends the sparse literature on the role of perceived fairness in explaining the behavioural effect of performance measurement systems. The findings also provide implications for practice, revealing the importance of the interactive and diagnostic use of financial and non-financial performance measures, and manager's perception of the fairness of performance appraisal processes as a mechanism through which individual manager's creativity can be enhanced. [ABSTRACT FROM AUTHOR]

The objective of this study is to evaluate the influence of the diagnostic and interactive use of the budget on managerial performance, as mediated by organizational commitment. A survey was carried out using Brazilian textile industry companies as a population, and the sample consists of 133 respondents to the questionnaire. Structural equation modeling was used to test the hypotheses. The results showed that the diagnostic and/or interactive use of the budget influences organizational commitment, as well as influencing managerial performance. The organizational commitment variable had a total mediating effect on the relationship between the use of budgetary control system and managerial performance, indicating that forms of budget use affect managerial performance only when managers are committed to the organization. Based on the results, we concluded that forms of budget use had influence on organizational commitment and on the managerial performance in the surveyed companies. These results advance the literature as they reveal that the diagnostic use and interactive use of the budget are antecedent variables of organizational commitment, leading to behaviors at work that can contribute to increasing managerial performance.

The objective of this study is to evaluate the influence of the diagnostic and interactive use of the budget on managerial performance, as mediated by organizational commitment. A survey was carried out using Brazilian textile industry companies as a population, and the sample consists of 133 respondents to the questionnaire. Structural equation modeling was used to test the hypotheses. The results showed that the diagnostic and/or interactive use of the budget influences organizational commitment, as well as influencing managerial performance. The organizational commitment variable had a total mediating effect on the relationship between the use of budgetary control system and managerial performance, indicating that forms of budget use affect managerial performance only when managers are committed to the organization. Based on the results, we concluded that forms of budget use had influence on organizational commitment and on the managerial performance in the surveyed companies. These results advance the literature as they reveal that the diagnostic use and interactive use of the budget are antecedent variables of organizational commitment, leading to behaviors at work that can contribute to increasing managerial performance. [ABSTRACT FROM AUTHOR]

urpose: This study analyzes the influence of the interactive and the diagnostic use of Management Control Systems (MCS) and slack time on process innovation in incubated companies. Originality/value: Organizational characteristics are associated with processes innovation in organizations with contemporary configuration. The study brings evidence to the contrasting findings of the MCS literature with slack time and process innovation. Design/methodology/approach: A survey was conducted with managers of companies listed on websites of incubators associated with the Associação Nacional de Entidades Promotoras de Empreendimentos Inovadores (National Association of Entities Promoting Innovative Enterprises), obtaining a sample of 106 valid responses. To analyze the data, the Structural Equation Modeling technique was applied to analyze the data. Findings: The results indicated that the interactive use of MCS promotes slack time at work, and the diagnostic use inhibits its creation. However, slack time was not significantly associated with processes innovation, which reveals a dysfunctional role of the slack. The interactive use of MCS had a significant influence on processes innovation. It is concluded that the interactive use prevails when the purpose is to promote processes innovation, as it favors contacts between different hierarchical levels and learning, while the diagnostic use highlights its relevance by inhibiting the creation of slack time, understood as a dysfunction for not leading to processes innovation. This denotes that the interactive and the diagnostic use of MCS are complementary in incubated companies. / Objetivo: Este estudo analisa a influência dos usos interativo e diagnóstico dos Sistemas de Controle Gerencial (SCG) e da folga de tempo na inovação de processos, em empresas incubadas. Originalidade/valor: Características organizacionais são associadas com a inovação de processos em organizações de configuração contemporânea. O estudo traz evidências aos achados contrastantes da literatura dos SCG com a folga de tempo e a inovação de processos. Design/metodologia/abordagem: Pesquisa de levantamento foi realizada com gestores das empresas listadas nos sites de incubadoras associadas à Associação Nacional de Entidades Promotoras de Empreendimentos Inovadores e obteve-se uma amostra de 106 respostas válidas. Para analisar os dados, aplicou-se a técnica de Modelagem de Equações Estruturais. Resultados: Os resultados indicaram que o uso interativo dos SCG promove a folga de tempo no trabalho e o uso diagnóstico inibe sua criação. Porém, a folga de tempo não apresentou associação significativa com a inovação de processos, o que revela um papel disfuncional da folga. O uso interativo dos SCG apresentou influência significativa na inovação de processos. Conclui-se que o uso interativo prevalece quando a finalidade é promover a inovação de processos, pois favorece contatos entre diferentes níveis hierárquicos e aprendizagem, enquanto o uso diagnóstico evidencia sua relevância ao inibir a criação de folga de tempo, entendida como uma disfunção por não levar à inovação de processos. Isso denota complementaridade dos usos interativo e diagnóstico dos SCG nas empresas incubadas.

The paper examines how rolling forecasting is used in planning and linked to other practices in a management control system. The paper combines a function-based view of budgeting with a more disaggregation-based conceptualisation, considering individual control systems. A multiple-case-study approach was adopted to investigate differences in the design and use of control systems across three industrial firms that had recently sought to improve their planning. The findings reveal two approaches to forecasting. In proactive-type planning, rolling forecasting was employed to promote information oriented toward more realistic forecasts and ideas emerging from interactive discussion were often put into action before quantified monetary deviations between plans and targets emerged. In reactive planning, rolling forecasting supported the supremacy of annual budgeting, and a more stable, joint process for both enabled analysing variances formally in a diagnostically oriented manner and revising plans accordingly. Synergies between budgetary practices were also found—for instance, in the process of setting targets, wherein the forecasts informed managers of the outcome level that was likely to be achievable and hence served as a realistic basis for setting more demanding targets. [ABSTRACT FROM AUTHOR]

It is well known that both management control systems (MCSs) and operations management (OM) are related to firm performance; however, an integrated st udy that involves MCS and OM within the context of firm performance is still lacking. This research aimed to examine the relationships among the use of MCSs and OM techniques and firm performance in the Brazilian auto parts industry. Simons’ levers of cont rol framework was used to characterise the uses of MCSs, and OM techniques, such as total quality management (TQM) and continuous improvement programmes, were adopted. The results obtained through the structural equation modelling indicated that the diagno stic use of MCSs is positively associated with the goals of cost reduction. In addition, the interactive use of MCSs is positively associated with the objectives of introducing new products, which is consistent with previous research. Additionally, OM tech niques are positively related to cost reduction but have no direct relationship with the introduction of new products.

We study the dual role of the interactive use of management accounting and control system (iMACS) on exports. On the one hand, we argue that the external focus of iMACS makes it increasingly more likely for companies to export (driver role). On the other hand, we expect iMACS to enhance the impact of exports on organisational performance (payoff role). Our paper therefore aims to provide a better understanding on how iMACS and exports interact. Using survey and archival data from 206 Spanish firms, it reveals partial support for our hypotheses and discusses the results in relation to previous literature and their managerial implications. [ABSTRACT FROM AUTHOR]

Fostering middle managers’ entrepreneurial behavior is a key concern for established firms. Budgets are one of the most widely used management tools in organizations, and several conceptual articles claim that the way in which they are used, most notably in an interactive way, affects middle managers’ autonomous strategic actions (ASA). This type of entrepreneurial behavior in established firms focuses on opportunities outside the firms’ currently served product-market domains. Using structural equation modeling and a formative measurement instrument for interactive use of budgets, we test these claims advanced in conceptual literature within a broad sample of large firms. We find that the way in which budgets are used does not significantly impact middle managers’ engagement in ASA. In contrast, firms’ boundary systems and middle managers’ autonomy seem important antecedents to ASA. [ABSTRACT FROM PUBLISHER]

Innovation has generally been considered essential to the prosperity of firms. The existing innovation literature does not emphasize budgeting as an important contributor to product innovation, even though it recognizes that poor budgeting may weaken the capability to innovate. However, the budgeting literature suggests that budgets can be used in different ways to improve firm performance. The purpose of this study is to investigate how the frequency of budget preparation and the interactive use of budgets are associated with product innovation and firm performance. The empirical data were collected, through a web-based survey, from CFOs and CEOs in 132 Finnish firms. The results of our partial least squares analysis indicate that the frequency of budget preparation positively affects product innovation through interactive budget use, which supports our hypothesis. Furthermore, the frequency of budget preparation and interactive budget use do have a direct positive relationship with firm performance, but one mediated by product innovation. Therefore, this study contributes to the innovation and budgeting literature by showing the frequency of budget preparation and interactive use of budgets to be two separate and important factors in product innovation. The results also show that the relationship between budgets and product innovation and performance are different in defender and prospector firms. [ABSTRACT FROM AUTHOR]

O propósito deste estudo de natureza empírico-teórica foi entender os relacionamentos entre o Uso do Sistema de Controle Gerencial; o desenvolvimento de Competências Organizacionais e Desempenho usando o framework proposto por Henri 2006 . A dimensão Uso do Sistema de Controle Gerencial proposta por Simons 1995; 2000 em Uso Diagnóstico e Uso Interativo é pouco estudada no Brasil; contrariamente à literatura internacional; embora esta tenha mostrado alguns resultados que são contraditórios. A pesquisa foi realizada em 2008; por meio de um survey em uma amostra de 104 empresas constantes da relação das 1.000 Maiores Empresas da Revista Exame. Com a aplicação da Modelagem de Equação Estrutural; os principais resultados mostram que não existem evidências de relacionamento negativo entre o Uso Diagnóstico e o desenvolvimento de Competências Organizacionais; o que contradiz os resultados de Henri 2006 . Também se identificou que o Uso Interativo influencia positivamente as competências Aprendizagem Organizacional e Orientação para Mercado e estas influenciam positivamente o Desempenho medido por auto-avaliação . O estudo contribui para a literatura nacional ao abordar um tema que integra Contabilidade Gerencial e Estratégia; e também por operacionalizar o construto Tensões Dinâmicas. O resultado contribui para a prática ao mostrar que as empresas devem continuar usando diagnosticamente o Controle Gerencial; pois este auxilia a organização a corrigir desvios; ao mesmo tempo que recomenda a utilização da forma interativa para ativar as competências organizacionais.The purpose of this study was to understand the relationship among Management Control System Use, development of company's organizational competences and performance using Henri's framework (HENRI, 2006). The dimension Use of Management Control System, proposed by Simons (1995, 2000) in diagnostic use and interactive use is scarcely studied in Brazil, in spite of the international research that has shown some contradictory results. The research was carried out in 2008, by a survey in a sample of 104 companies from Exame Magazine 1000 Biggest Brazilian Companies. Using the Structural Equation Model, the main results indicate no evidence of negative relationships between the diagnostic use and the organizational competences development, what contradicts Henri's results (2006). It was also identified that the interactive use has positive influences in the competences of Organizational Learning and Market Orientation, and these have positive influences in Performance (measured by self-evaluation). This study contributes to Brazilian research as its subject integrates Management Accounting and Strategy and also for measurement the construct Dynamic Tensions. For the practice, the result is important as it shows that companies should continue to use Management Control for diagnostic, as it helps the organization to correct errors, simultaneously recommending the use of interactive way to activate organizational ompetences.

This paper explores how national school performance measures are used as a management control system in Norwegian schools and the relationship between the use of these measures and student performance. Survey data from Norway and archival family background data are examined with the results of national tests (NTs) taken by grade 5 students (10 year olds). The study finds interesting relationships between how schools use NT results and student performance. The findings provide insight into how take up of national tests can be improved within Norwegian schools. These insights might also be transferable to schools outside Norway. [ABSTRACT FROM AUTHOR]

Previous literature reveals contradictory results when evaluating the effect of outsourcing on organisational performance. In attempting to explain this contradiction, the existing research seems to have overlooked potential intermediate variables such as management accounting and control systems (MACS). Because an inadequate control of supplier relationships can impair the performance of outsourcing operations, there is a need to adopt management tools to build and improve these relationships. MACS comprise the various policies and procedures used to ensure that the suppliers’ behaviour and decisions are consistent with outsourcing objectives. The interactive use of these management tools can help effectively manage the relationship between the outsourcing organisation and the outsourcer. Taking a sample of 231 organisations, the results obtained support the research question, suggesting that interactive use of MACS moderates the impact of some outsourced activities on performance. [ABSTRACT FROM PUBLISHER]

Management accounting systems (MAS) provide an information context that is required for strategic sensemaking. Research from the interpretive perspective of information processing suggests some mechanisms how MAS can contribute to strategic sensemaking, although it neglects the relationship between MAS use and MAS dimensions. The systems-structural perspective identified some important MAS dimensions, but it does not explain how these dimensions contribute to strategic sensemaking. The objective of this study is to explore the role of MAS in sensemaking and how MAS dimensions contribute to this role. Based on 30 interviews with top and middle managers from 7 large companies we suggest a set of MAS dimensions that relates to sensemaking. [ABSTRACT FROM AUTHOR]

Although various logical story unit (LSU) segmentation methods based on visual content have been presented in literature, a common ground for comparison is missing. We present a systematic evaluation of the mutual dependencies of segmentation methods and their performances. LSUs are subjective and cannot be defined with full certainty. To limit subjectivity, we present definitions based on film theory. For evaluation, we introduce a method measuring the quality of a segmentation method and its economic impact rather than the amount of errors. Furthermore, the inherent complexity of the segmentation problem given a visual feature is measured. Also, we show to what extent LSU segmentation depends on the quality of shot boundary segmentation. To understand LSU segmentation, we present a unifying framework classifying segmentation methods into four essentially different types. We present results of an evaluation of the four types under similar circumstances using an unprecedented amount of 20 hours of 17 complete videos in different genres. Tools and ground truths are available for interactive use via the Internet. [ABSTRACT FROM PUBLISHER]